Despite a decrease in investments in Fully Accessible Route (FAR) securities, foreign portfolio investors (FPIs) have increased their holdings in 10-year benchmark government bonds in November.

This increase is due to the bonds' high liquidity in the secondary market, which makes them more appealing to FPIs and institutional investors who engage in daily trading.

According to data from the Clearing Corporation of India Ltd, FPI holdings in the new 10-year benchmark bond, yielding 6.69 percent, rose to 0.68 percent as of November 27, up from 0.54 percent on October 31.

The bonds' inclusion in the JP Morgan bond index further enhances their attractiveness among foreign investors.